Media group Johnston Press, which owns 13 regional papers in Ireland, said today that total advertising revenues for the first 26 weeks of the year were down by 32.7 per cent.
The company, whose titles include the Limerick Leader , Kilkenny People , Leinster Leader and Tallaght Echo, said that the rate of decline in ad revenues had slowed to 22.1 per cent during the first 18 weeks of the second half of the year.
Johnston spent €260 million in acquiring its Irish titles over a four-year period.
“The greater stability in advertising revenues we referred to in the half year announcement has continued with the average weekly advertising revenues in September and October being at the same level as in May and June, with improvements in the property market offsetting a continued decline in recruitment related revenues,” it said in a trading update.
Johnston cut jobs and closed a number of titles earlier this year after it decided not to sell its Irish titles because received bids were too low.
The company, which also publishes the Yorkshire Postand The Scotsman, said it expects its cost-cutting programme to achieve about £50 million in savings by the end of 2009.
Last month the group announced the closure of two printing operations, one of which was the Kilkenny People Printing, which prints the Kilkenny People, Clonmel Nationalistand Tipperary Star, a move that led to the loss of 46 jobs.
The company said increased redundancy costs due to the closures mean that the cash exceptional costs for the year will be close to £12m. The closures will also result in a write-off totalling £20m.
Johston’s said its business continues to be cash generative, but said there is limited scope for debt reduction in the second half of the year due to £15m in refinancing fees and increased interest costs.
“Given the greater stability in advertising revenues, combined with reducing declines in circulation revenues and continued progress with cost savings, the group is confident of delivering an operating profit in line with current market expectations for 2009,” the company said
